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Example: SWOT and AHP

Using AHP and SWOT analysis in strategic planning process


SWOT analysis includes examination of internal (Strengths and Weaknesses) and external (Opportunities and Threats) operational environments. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving objectives


A result of SWOT analyses  is a list or table of factors most relevant to the strategic planning situation. The goal of strategic planning process, of which SWOT is an early stage, is to develop and adopt a strategy resulting a good fit between internal and external factors and objectives of decision makers.


·        Strengths: attributes of the organization which are helpful to achieving the objective.

·        Weaknesses: attributes of the organization which are harmful to achieving the objective.

·        Opportunities: external conditions which are helpful to achieving the objective.

·        Threats: external conditions which are harmful to achieving the objective.

Let's take example where one company has to choose among several projects the one that could bring the biggest benefits for the company. For all projects initial costs are similar the only thing that are different are details of  expectations.

Department for strategic planning made SWOT analysis for all projects. Management has to select one.  The problem for the management is that in the analysis they have only qualitative factors, there are no means to analytically determine importances of factors.

However the analysts with management can make comparisons among different projects and factors. They start to use AHP.

At the end the CEO must decide.

  I have
and I

can help
me to pick
the best one.
I can
how and
I choose
the I found
the best.

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